The unadjusted trial balance of Quick Repairs at October 31, 2008, the end of the current year, is shown below.

The data needed to determine year-end adjustments are as follows:

a. Supplies on hand at October 31 are \(\$ 7,120\).

b. Insurance premiums expired during year are \(\$ 2,000\).

c. Depreciation of equipment during year is \(\$ 4,200\).

d. Depreciation of trucks during year is \(\$ 2,200\).

e. Wages accrued but not paid at October 31 are \(\$ 600\).
{Instructions}
1. For each account listed in the trial balance, enter the balance in the appropriate Balance column of a four-column account and place a check mark \((\checkmark)\) in the Posting Reference column.
2. Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet. Add the accounts listed in part (3) as needed.
3. Journalize and post the adjusting entries, inserting balances in the accounts affected. The following additional accounts from Quick Repair's chart of accounts should be used: Wages Payable, 22; Supplies Expense, 52; Depreciation Expense-Equipment, 54; Depreciation Expense-Trucks, 56; Insurance Expense, 57.

4. Prepare an adjusted trial balance.

5. Prepare an income statement, a retained earnings statement, and a balance sheet.

6. Journalize and post the closing entries. (Income Summary is account \#34 in the chart of accounts.) Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry.

7. Prepare a post-closing trial balance.

objs. 2,3

Transcribed Image Text:

Quick Repairs Unadjusted Trial Balance October 31, 2008 Debit Balances Credit Balances 11 Cash 2,950 13 Supplies 12,295 14 16 17 18 19 Prepaid Insurance Equipment Accumulated Depreciation-Equipment Trucks Accumulated Depreciation-Trucks 2,735 95,650 21,209 36,300 7,400 21 Accounts Payable 4,015 31 Capital Stock 10,000 32 Retained Earnings 57,426 33 Dividends 6,000 41 Service Revenue 99,950 51 Wages Expense 26,925 53 Rent Expense 9,600 55 Truck Expense 5,350 59 Miscellaneous Expense 2,195 200,000 200,000